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Ometraco, Accor tie up to build three star hotels

| Source: JP

Ometraco, Accor tie up to build three star hotels

JAKARTA (JP): PT Ometraco Realty, a public property firm,
signed two agreements yesterday with Accor Asia Pacific, an
international hotel management company, for the creation of a
hotel development company and a hotel management firm.

Under the agreement, which was signed here by Ometraco's
president F.X. Boyke Gozali and Accor's Indonesia chief
representative Marc Steinmeyer, the two companies will construct
more than a dozen three-star hotels under the name of Ibis, one
of Accor's brandnames, in 12 cities.

Steinmeyer said that in the first two-year period, the two
companies will develop five hotels in Jakarta, Semarang, Cirebon
and Solo in Central Java, and Surabaya, East Java.

"We plan to build more hotels in other cities, including
Malang in East Java, Pekan Baru in Riau, Palembang in South
Sumatra, Padang in West Sumatra, Medan in North Sumatra and Ujung
Pandang in South Sulawesi," he said.

He said that the two parties agreed to put up US$6 million
each in the hotel development company.

Gozali said that Indonesia still needs additional hotel rooms
in the coming years as the country's tourism industry is growing
steadily.

Minister of Tourism, Post and Telecommunications Joop Ave, who
witnessed the signing ceremony, said that this year foreign
visitor arrivals will likely exceed 4 million.

Historical properties

The other agreement signed by Ometraco and Accor yesterday
called for the establishment of a hotel management firm which
will focus on running properties with historical and cultural
backgrounds in Indonesia and overseas.

"We will renovate aging properties into special hotels ,"
Boyke said.

He also said that the hotels will be given Indonesian names,
including those located in foreign countries.

Joop asked told the executives to look for aging buildings in
Semarang, Glodok area in West Jakarta, as well as in Western and
Eastern Europe.

Accor Asia Pacific has the franchise to operate hotels under
the Accor brands comprising Sofitel for five-star hotel, Novotel
for four-star and Mercure, Ibis and Formula I for three-star and
economy hotels.

Accor Asia Pacific, a public company listed on the Australian
and Hong Kong Stock Exchanges, is a merger between Quality
Pacific Corporation of Australia and Accor SA.

There are currently four Accor's hotels under Ibis name in
Jakarta, Steinmeyer said, adding that three others are under
construction and another three will be constructed soon."

He said that several other hotels in Toraja, Bukit Tinggi and
Medan will start operations next year.

At least there are five leading business groups in Indonesia
appointing Accor to manage their hotels, including Ometraco, PSP,
Kodel, Poleko and Brasali.

Ometraco, which owns 21 percent of the five-star Grand Hyatt
Hotel in Jakarta, has also chosen Accor to manage the four star
Novotel Surabaya and Tropics Apartment in West Jakarta.(icn)

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